The Expected Average Rate of Return for a Proposed Investment

question 159

Multiple Choice

The expected average rate of return for a proposed investment of $8,000,000 in a fixed asset, using straight line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $12,000,000 is:

• A) 15%
• B) 12%
• C) 40%
• D) 7.5%

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